The pilot project will first focus on the accuracy of demographic data in health plan provider directories, which are labor-intensive to maintain and include data that's common to competing health plans. (Photo: Shutterstock)
Blockchain seems to be everywhere these days, including health care.
The Star Tribune reports that UnitedHealth Group is exploring how blockchain might be used to better manage health care data, and to that end is actually working with rival provider Humana—as well as Quest Diagnostics and New York-based MultiPlan—on a pilot project.
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The group effort is intended to see whether blockchain can keep a health plan's in-network provider directory current—something that is a common complaint among insureds, as well as drawing scrutiny from regulators when it fails.
In a joint statement, the companies said, "Industry estimates indicate that $2.1 billion is spent annually across the health care system chasing and maintaining provider data. The pilot will examine how sharing data across health care organizations on blockchain technology can improve data accuracy, streamline administration and improve access to care."
While blockchain started out life in the cryptocurrency arena, in an attempt to create a secure environment for exchanging financial information for Bitcoin, according to Mike Jacobs, a senior distinguished engineer at UnitedHealth Group's Optum division for health care services, interest has spread beyond the field of digital currencies as industries outside cryptocurrency want to see if nonpublic blockchains could be useful for their enterprises.
Jacobs said in the report that the technology tends to be open-source software at its origin, and is intended to tackle business problems for multiple companies that want to share information and streamline processes. The pilot project will first focus on the accuracy of demographic data in health plan provider directories, which are labor intensive to maintain and include data that's common to competing health plans.
"This is likely one of the very first nationwide health care blockchain alliances," Jacobs said in the report, adding, "Health care in general is just getting started on understanding what the appropriate uses are of this technology."
Quest's involvement in the project stems from its routine pickups of specimens from clinics and billing of health plans for running tests. If demographic information about those clinics varies from lab to health plan, insurers might reject the claim—leading to an expensive process for both sides to make sure the bill should be paid.
"It's in a diagnostic laboratory's best interest to ensure that the most up-to-date information is at the insurance company," Jacobs said in the report. He added, "And the best way to do that is to share the best information that they have on hand, and share it with as many of the insurance companies as possible."
If blockchain works on keeping directories current, it could cut some of the expense involved in maintaining the data.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
